Frequently asked questions
How long do you expect to keep these hotel properties?
Ideally, we would like to sell each property after 5 years, but we want to have some flexibility to adjust to market conditions and have established a holding period of 5 to 7 years.
What kind of compensation is the NLL and/or sponsor receiving?
When can I expect to receive my share of cash distributions?
Cash distributions will be made quarterly and you can expect to receive your distribution within 30-45 days following the end of each calendar quarter.
Will you be providing me with reports and information needed for filing my tax returns?
Have you made allowances for property upgrades and PIP work?
Will the sponsor (National Lodging & Leisure) be investing any of their money in these properties?
Yes, an affiliate of National Lodging & Leisure (NLL Group, LLC) will be co-investing alongside our investor partners an amount up to 10% of the total equity amount for each property acquired.
Is this investment suitable for a 1031 Exchange?
Yes, our investment properties are an excellent option for someone involved in a 1031 exchange transaction. Please contact us for additional information and instructions.
Why are you focusing only on Florida?
How risky is this investment?
Do you have prior experience with these kinds of investments?
Yes. The principals of NLL have completed over 50 private equity placements like this over the past twenty years and have extensive experience in equity and long-term debt placement.
What happens to my investment if you are unable to acquire a hotel(s)?
The escrow agreement provides that in the event we are unable to acquire a hotel property that meets our criteria and approval by our investors within six (6) months from date specified in the escrow agreement, we will return your funds to you, plus any accrued interest.
Can I sell my interest or ownership units at any time? How liquid is this investment?
Will you be offering the investors any perks?
Yes. Investors will have the opportunity to book rooms at our hotels at our “owner rate” of $25 per night. Naturally, some restrictions will apply and details on this can be found in the Term Sheet.
What makes you different from other hotel investment options?
We also run a very lean (cost effective) management team. We don’t waste our investor’s money on unnecessary bells and whistles. Since we co-invest with you in all our transactions, your money is our money.
What makes you different that some of the Non-Traded Real Estate Investment Trusts?
There are quite a few differences. First, we don’t charge an upfront fee or “load” of at least 10% (in effect only 90% of your money is working). Second, we will only be acquiring properties that will generate much higher returns (12% to 15% cash on cash), versus REIT’s average returns in the 6% to 9% range. And third, our investments will have a substantial capital appreciation component, sometimes totally missing from most REIT’s. All you receive from most private REIT’s is a coupon return. Period.